Gold Prices Fall on MCX Amid Stronger US Dollar and Rising Crude Oil Prices
Gold and silver prices decline sharply as investors react to a stronger dollar, rising oil prices, and concerns over prolonged high interest rates amid global geopolitical tensions.
New Delhi, May 15, 2026: Gold prices witnessed a sharp decline on Friday morning in the domestic futures market, pressured by a stronger US dollar and elevated crude oil prices amid ongoing geopolitical tensions.
On the Multi Commodity Exchange (MCX), gold June futures fell 0.87% to ₹1,60,562 per 10 grams, while silver July futures dropped 3.28% to ₹2,81,551 per kilogram around 9:05 AM.
International gold prices also slipped to their lowest level in over a week and appeared headed for a weekly decline. Market experts believe that rising energy prices have triggered fears of higher inflation, which may force central banks, especially the US Federal Reserve, to maintain elevated interest rates for a longer period.
A stronger US dollar added further pressure on precious metals. The dollar index gained 0.30% to 99.10, while benchmark crude oil prices surged, with Brent crude trading above $107 per barrel. Rising US Treasury bond yields, particularly the 10-year yield touching a near one-year high, also weighed on gold prices.
The precious metals market remains highly volatile due to the ongoing conflict involving the United States and Iran, along with uncertainty surrounding the high-profile meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing. Analysts believe discussions on trade relations and the Middle East conflict could significantly impact global economic and inflation trends.
Market analyst Jigar Trivedi stated that gold is likely to record a nearly 2% weekly decline, as accelerating inflation concerns increase the possibility of higher US interest rates. He expects MCX gold June futures to remain capped near ₹1,62,500 per 10 grams, with possible downside pressure.
Experts have advised investors to avoid fresh buying in gold and silver for now, citing uncertainty surrounding geopolitical developments and the outcome of the Trump-Xi summit. Commodity researcher Manoj Kumar Jain highlighted key support and resistance levels, suggesting that volatility may continue in the near term.
Meanwhile, analysts maintain that despite short-term corrections, geopolitical risks and safe-haven demand may continue supporting bullion prices over the longer term.
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